Experts observe this could fuel inflation as manufacturers pass on increased costs to consumers by increasing the prices of basic commodities.â
Higher inflation
"There is high likelihood that even if inflation declines this month, come May and June, we could see a reversal in trend," said Ngaine.
Though the government had made it clear it plans to maintain a tight monetary policy at least in the immediate future, more so to tighten liquidity, the countryâs continued susceptibility to external factors is rendering such efforts impotent.
But Githae hopes the recent discovery of oil in Turkana could save the country the dangers of fuel-driven inflation if found to be commercially viable.
"Oil discovery in Kenya would mean reduction of the petroleum import bill and have cheaper oil for local consumption," he said.
The discovery will also help shore up foreign exchange reserves that have drastically reduced to below $4 billion â equivalent to between three and seven months of import cover.
